Wednesday March 9th will be a milestone for traders and investors alike. Stocks have more than doubled from their March 9,2008 credit crisis low of 666, otherwise known as the Devil's Low
And chatter on the Street this March 9th will have everything to do with the 2-year old bull and whether it grows much older.
A growing chorus of skeptics worry that the surging price of oil will be the proverbial thorn in this market’s side – with high prices at the pump wreaking havoc on the recovery not to mention the stock market.
However, calls for the bull's demise have been premature.
Even on Tuesday in the face of so much geo-political unrest the bulls were able to drive stocks out of the danger zone, at least from a technical perspective.
Specifically, the S&P 500 jumped back above a six-month trend line that connects lows in late August and late November, after closing just below it on Monday. Similarly, the Nasdaq rallied from its 50-day moving average in another indication of an uptrend.
Holding these levels are considered signs of strength, but traders remain cautious, worried that these key technical levels will soon be tested again.
What should you be watching?
Instant Insights with the Fast Money traders
Fast trader Joe Terranova suggests keeping an eye on the 50-day in the S&P, which is about 1294. He thinks as long as that level holds, the rally remains in tact.
As for key technicals being tested again, Terranova will be watching. “If we get another leg up in oil, if it runs toward $110 as long as the S&P holds above its 50-day moving average, I’d take it as a sign that fundamentals are strong,” he says.
In fact, Terranova believes fundamentals will drive the market going forward. He thinks as the market grows more comfortable with higher oil prices, signs of economic improvement will be the major market catalyst.